RL vs XLY: Correlation
Measured on weekly returns over the past three years, Ralph Lauren Corporation (RL) and Consumer Discretionary Select Sector SPDR Fund (XLY) carry a correlation of 0.46, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are RL and XLY?
Across a 3-year window, the weekly returns of RL and XLY correlate at 0.46, moderate. Little has changed lately, as the 1-year reading of 0.46 lands near the 3-year figure. Stretching to 5 years gives 0.55, with an annualized covariance of 306.7 %².
Within RL's tracked universe of 42 assets, XLY comes in at #18 by 3-year correlation. The last year tells two different stories: RL led by 20.8 percentage points, +20.7% for RL against -0.1% for XLY. On a rolling one-year basis the correlation drifted between 0.34 and 0.60, a moderate band. Note the risk asymmetry: RL runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
RL vs XLY: side by side
| RL (Ralph Lauren Corporation) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | -0.1% |
| 5-year return | +232.5% | +31.8% |
| Volatility (ann.) | 33.6% | 19.7% |
| Beta vs S&P 500 | 1.07 | 1.15 |
| Max drawdown (3Y) | -36.2% | -26.0% |
| Market cap | $21.0B | – |
| P/E (trailing) | 22.8 | – |
| Dividend yield | 1.03% | 0.78% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $22.5B |
| Sector / category | Consumer Discretionary | Sector ETF |
XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Year-by-year returns
| Year | RL | XLY |
|---|---|---|
| 2022 | -8.4% | -36.3% |
| 2023 | +39.8% | +39.6% |
| 2024 | +62.9% | +26.5% |
| 2025 | +55.0% | +7.4% |
| 2026 | +0.0% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that XLY holds RL at a 0.35% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are RL and XLY good diversifiers for each other?
Reasonably. At 0.46, RL and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between RL and XLY?
The RL/XLY correlation stands at 0.46 on a 3-year window (1 year: 0.46, 5 years: 0.55), computed from weekly returns as of 2026-08-27.
Is XLY a good diversifier for RL?
Reasonably. At 0.46, RL and XLY keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.46 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/rl-vs-xly.json
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Related comparisons
Hubs: RL correlations · XLY correlations
